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Is XBox One A Catalyst To Consider As Ballmer Retires From Microsoft?

Written by: Kapitall11/18/13 - 4:54 PM EST

Tickers in this article:
GOOG MSFT NOK SNE

Chris Lau, Kapitall: Will the Xbox One help Microsoft in the wake of CEO Steve Ballmer's departure, or does it not matter?

When Steve Ballmer retires from Microsoft (MSFT), opinion will be mixed. The CEO led Microsoft successfully, by growing sales and share price. What he failed to do quickly was position Microsoft as a credible devices and services company.

Click on the interactive chart to see MSFT quarterly sales and market cap compared.

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So where next from here? Two things that will likely weigh on Microsoft after Ballmer retires are the Surface tablet and the phone division.

Tablet strategy

Microsoft’s Surface strategy has yet to play out successfully. The initial Surface RT was not as popular as they had hoped, and the company needed to write down much of the hardware inventory. But the Surface 2 and Surface Pro 2 were recently launched, and could find greater success.

Lumia unit purchased

When Microsoft closes its purchase of the Lumia division from Nokia (NOK), it will have full control of the smartphone’s development. Profitability could remain a challenge, but Microsoft appears to be willing to act aggressively to grow market share.

Together with the Lumia 1520 tablet launch, Microsoft could start to gain inroads in the mobile space. In Q3, Microsoft more than doubled its sales compared to last year. It now has 3.6% of the worldwide market: